GLAXOSMITHKLINE PAYS $3 BILL. OVER DRUG LABELING FRAUD - LARGEST HEALTH CARE SETTLEMENT IN HISTORY

A U.S. unit of GlaxoSmithKline has today agreed to plead guilty and pay $3 BILLION for marketing drugs for unapproved uses according to documents filed in Federal Court in Boston. According to The Dept. of Justice, this is the largest health care fraud settlement in U.S. History. Glaxo admits to illegally promoting Paxil for children and adolescents, wrongfully marketing Wellbutrin for weight loss and purposes other than those approved by the F.D.A. and failing to report data regarding safety of its Avandia diabetes drug to regulators. Glaxo will pay $2 billion to resolve civil liabilities under the False Claims Act, as well as with the states. These arise from whistleblower cases. It will also pay $1 billion for criminal fines. Glaxo last year set aside $3.5 billion to cover the cost of the settlement and another $700 million to resolve patient lawsuits alleging Avandia caused heart attacks and strokes. The case is U.S. v GlaxoSmithKline LLC 12-10206 UNited States District Court of Massachusetts (Boston). Jeffrey Newman represents whistleblowers. His offices are in Boston and Marblehead. 617-823-3217. Court documents related to today’s settlement can be viewed online at www.justice.gov/opa/gsk-docs.html.